MARTS & LNDY SPECIAL REPORT · 2017-03-30 · #2 New York #3 Oregon California led all other states...
Transcript of MARTS & LNDY SPECIAL REPORT · 2017-03-30 · #2 New York #3 Oregon California led all other states...
MARTS & LUNDY SPECIAL REPORT
March 2017
$10M+ Gifts to Higher Education
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MARTS & LUNDY SPECIAL REPORT
While some top donors to nonprofits may be increasingly choosing to “build their own” foundation
in order to exercise direct control over the mission — or to give smaller gifts to a larger number
of organizations — Higher Education seems to have retained its top donors. In 2016, the Higher
Education sector realized an 11 percent increase over 2015 in mega gifts of $10M and above.
While giving at the middle of the gift pyramid has dropped off somewhat, mega gifts continue to
drive “mega campaigns” at colleges and universities.
It is noteworthy, however, that the number of mega gifts grew more modestly, and gifts at the $50M
and higher level decreased by almost a third in 2016 compared to 2015. This decrease may be an
artifact of the data given that the number of $50M+ gifts is annually quite small. Another explanation
for this slowdown could, in part, be due to the presidential election; elections have historically
impacted larger commitments more than those at the lower levels of the gifts pyramid due to the
uncertainty that an election brings, particularly around potential tax law changes.
Neither of these explanations indicate that we should expect more contraction at the top of the
pyramid in 2017. Colleges and universities continue to dominate other nonprofit sectors in receiving
gifts of $10M or more. In 2016, Higher Education organizations received approximately two-thirds
of all dollars committed at this level, which is consistent with the past two years.
This report of $10M+ gifts paired with The Philanthropy Outlook 2017 & 2018 further supports our
belief that philanthropy will continue to advance in the coming two years, with forecasts of growth
in giving to Higher Education averaging more than 6 percent over each of the next two years. And
we see no signs of a slowdown among our more than 100 current Higher Education clients.
As nonprofits work to position themselves for success in this period of growth in giving, there
are trends that warrant close attention, including the migration toward donor advised funds as well
as potential tax policy changes. This report, The Philanthropy Outlook and Giving USA are reliable
tools to inform your strategic planning discussions and increase your confidence in the future
investments you make in your philanthropy program.
Donald M. Fellows
Senior Consultant & Principal
Leader, Higher Education Practice
A Perspective on Giving to Higher Education
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MARTS & LUNDY SPECIAL REPORT
Key Findings
Giving Dollars: 2015 vs. 2016 (See Figure 1, Page 2)
Overall Gifts and Commitments
+11%2015: $5.57B vs. 2016: $6.18B
$50M+ Gifts and Commitments
+9%2015: $2.94B vs. 2016: $3.21B
Number of Gifts and Commitments 2015 vs. 2016 (See Figure 2, Page 3)
Overall Gifts and Commitments
+5%2015: 184 vs. 2016: 194
$50M+ Gifts and Commitments
-28%2015: 32 vs. 2016: 23
Giving Dollars by State (See Figure 3, Page 4)
#1 California
#2 New York
#3 Oregon
California led all other states as a recipient of Higher Education dollars
by a wide margin.
Higher Education as Percentage of Total $10M+ Philanthropic Dollars (See Figure 4, Page 5)
Excludes giving to foundations
65.6%
2015
65.9%
2016
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MARTS & LUNDY SPECIAL REPORT
Figure 1: $10M+ Giving to Higher Education through 2016
All dollar amounts in billions
The value of $10M+ gifts to
Higher Education increased
by 11 percent between 2015
and 2016. The 2016 total
of $6.18B is a 13.6 percent
increase from 2007’s
pre-Great Recession total
adjusted to 2016 dollars
($5.44B).
Data Source
In past years, Marts & Lundy has used several different sources to report on $1M+ and $50M+ giving to
Higher Education. Since 2015, our analysis has been streamlined by focusing on gifts and commitments
of $10M or more from primarily one source: The Chronicle of Philanthropy “Big Charitable Gifts” database.
The Chronicle’s list has been supplemented with additional $10M+ gifts and commitments identified through
an automated search of gift announcements on Twitter.
All gift types have been included in this analysis: Non-Cash/Gifts-in-Kind, Bequests, Challenge and
Matching, and Gifts (including pledges). This analysis reflects only gifts and commitments made by
individuals, directly or through family foundations, to recipient organizations within the United States.
Gifts made to academic medical centers are generally included as gifts to Higher Education.
Source: The Chronicle of Philanthropy and Twitter. Includes gifts and commitments.
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
$3.40
$4.67
$1.26
$2.32
$3.23
$2.33
$5.36
$4.80
$5.57
$6.18
DJIA
12.513.3
8.7
10.4
11.612.2
13.1
16.6
17.8 17.4
19.8
$3.24
Note: Line indicates year end value of the Dow Jones
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MARTS & LUNDY SPECIAL REPORT
While both the dollar value and count of $10M+ gifts to Higher Education increased between 2015 and
2016, the number of $50M+ gifts dropped by almost a third. Between 2006 and 2015, $100M+ gifts have
represented 7.2 percent of all $10M+ gifts to Higher Education. In 2016, $100M+ gifts accounted for only
5.2 percent of the count of $10M+ gifts. Gifts in the $10M-$24M range made up a larger proportion of
$10M+ gifts than in any year since 2006. With the increase in total number of $10M+ gifts, this could
indicate that more donors are being upgraded into the $10M-$24M range.
Source: The Chronicle of Philanthropy and Twitter. Includes gifts and commitments.
Figure 2: $10M+ Number of Gifts and Commitments to Higher Education through 2016 by Gift Level
$100M+ $50M – $99.9M $25M – $49.9M $10M – $24.9M
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
119
33
18
14
134
37
13
10
75
27
99
71
25
14
14
62
18
127
13
37
51
43
18
85
25
75
57
59
21
74
86
33
17
13
80
25
23
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MARTS & LUNDY SPECIAL REPORT
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Figure 3: 2016 $10M+ Giving to Higher Education by Recipient State
For the second year in a row, California leads as the recipient of the most $10M+ giving to Higher Education
and by a wider margin than last year. New York is in second place due to a bequest of $400M to American
Associates, Ben-Gurion University of the Negev, followed by Oregon, where the $500M Knight gift was made
to the University of Oregon. Together, California, New York, and Oregon make up half of the year’s $10M+
giving to Higher Education.
4$532M
34$1.83B
1$10M
1$24M
7$136M
1$25M
1$20M
1$14M
2$35M
3$38M
2$55M
12$244M
10$185M
5$116M
10$198M
17$748M 12 $224M
RI: 2 $52MCT: 4 $110M
NJ: 4 $66M
DC: 3 $35M
MD: 7 $475M
2 $86M
3$30M
3 $120M
1$10M
5$144M
1$17M
5$70M
7$150M1
$10M
2$35M
2$25M
5$64M
3$35M
1$10M
10$199M
Number of Gifts and Total Dollar ($) Amount
Source: The Chronicle of Philanthropy and Twitter. Includes gifts and commitments.
MARTS & LUNDY SPECIAL REPORT
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Figure 4: Higher Education as Percentage of Total $10M+ Giving through 2016
As a percentage of overall giving, $10M+ giving to Higher Education remained basically steady from
2015 to 2016. $10M+ giving to health-related causes saw the largest increase relative to other sectors.
Similarly, the giving to health-related initiatives within $10M+ Higher Education grew from an 18 percent
share ($1B) to 25 percent of $10M+ Higher Education giving ($1.6B) in 2016. Please note that this chart
includes Gifts-in-Kind.
Note: The Chronicle of Philanthropy designates giving to the Bill & Melinda Gates, Walton Family, Conrad N. Hilton, and similar
foundations as giving to “Foundations.” Such gifts are excluded here. Other gifts to foundations, such as the ClearPath Foundation,
are designated as giving to specific causes and are included here.
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
10.5%
8.7%
12.4%
66.8%
9.7%
12.0%
3.0%
71.8%
11.2%
5.7%
4.8%
75.5%
9.1%
12.4%
15.7%
59.1%
9.6%
6.6%
1.3%6.3%
76.2%
8.6%
13.7%
73.5%
15.5%
6.1%
12.2%
63.3%
7.5%
11.1%
5.7%
73.4%
15.4%
15.3%
65.5%
18.6%
8.0%
6.6%
65.6%
9.7%
14.7%
8.4%
65.9%
Arts, Culture & Environment Health Higher Education Other Causes Schools
Source: The Chronicle of Philanthropy and Twitter. Includes gifts and commitments.
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Thank you to Alison Rane, Associate Consultant and Manager, Research and Development, for her work on this report. And a special thanks to Nelson Lees, who for many years made this report possible. Though he has retired, we are pleased to ensure that the good work he began will continue in earnest.